Elves do Fade and become disembodied spirits haunting remote places, maybe even to this day, according to Tolkien. Manipulating those spirits was the main reason Sauron was called the Necromancer.
It’s just a natural process that has nothing to do with “sources of magic”, Elves lived the vast majority of their time in ME without “sources of magic.” This conceit came from Rings of Power, I am pretty sure.
It’s just a natural process that has nothing to do with “sources of magic”, Elves lived the vast majority of their time in ME without “sources of magic.” This conceit came from Rings of Power, I am pretty sure.